Ocean Power Technologies' CEO Discusses F2Q12 Results - Earnings Call Transcript

Turning to Slide 4. I'm happy to say that our LEAP autonomous PowerBuoy performed well during its ocean demonstration, providing persistent power in all wave conditions, withstanding the 50-foot high waves of Hurricane Irene. The LEAP PowerBuoy which was taken out of water several weeks ago at the completion of its ocean trials, as provided under our contract with the U.S. Navy. We're very encouraged by the potential market for our autonomous PowerBuoy product.

As a reminder, the autonomous PowerBuoy operates totally independently and can generate power in all wave conditions using OPT's proprietary power management system. This includes persistent power generation in the ranges needed for sophisticated vessel detection and tracking systems for maritime surveillance along coasts. Systems currently being used for remote power is the often utilized diesel generators, which require frequent maintenance and fuel replenishment and can be very noisy.

The autonomous PowerBuoy is also appropriate for oil and gas platforms, offshore fish farming and desalination. Consider the number of oil and gas platforms worldwide that could benefit from a clean, quiet and persistent source of power right from the waves where they operate. Given its smaller size and variety of applications, the autonomous PowerBuoy is seeing increasing interest and we're marketing it aggressively. We believe there's a bright future for such buoys across a multitude of markets.

Turning to Slide 5. I'd now like to provide an update on our project in Reedsport, Oregon, and the latest on our collaboration with Lockheed Martin. This agreement with Lockheed is an important step for the commercialization of our PowerBuoys. Working on the Reedsport project, Lockheed will provide their expertise in the areas of design for manufacturing and systems integration to enhance our proprietary technology. We're committed to improving power conversion efficiency, reliability, manufacturability and lowering the cost of marine operations and maintenance. Lockheed's expertise in large-scale manufacturing and supply chain management will greatly assist us in reaching these goals in a timely manner thus making our applications more attractive to our potential partners and customers.

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